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  • Writer's pictureEd Patton

Financial Fundamentals = "New Category"

Updated: 11 hours ago

Business leaders benefit from having succinct financial fundamentals in everyday language.

Financial fundamentals are a “new category”. 

They are the antithesis of the voluminous KPIs and metrics that can inundate and therefore dilute the effectiveness of a lot of financial reporting. 


Prior to, or in conjunction with, reviewing the specifics of the three basic financial statements & / or details of operations, etc provide business leaders with their company’s big financial picture.

(This provides an overall full financial & business context that enhances further in-depth analysis.)

Note…existing internal balance sheets and cash flow statements are important, but they may be seen only as pieces of paper with a lot of numbers on them, appear arcane, not well understood, and, therefore, they can be ineffective.  



Challenge…condense a business’s financial statements and full financial profile into five numbers.


By effectively presenting the correct 5 numbers, businesses financially comprehend:

  • Where they have been 

  • Where they are

  • Where they are going 

A company’s full financial profile, includes and conveys the following - these touch all aspects of the business and therefore provides insights into all aspects of the business:

  1. Cash flow

  2. Earnings from operations

  3. Capital components (this includes financial health; value; borrowing capacity)

Note…Cash flow and ops earnings drive the capital components (or...1. and 2. above drive 3.). Another way to think about this is that cash flow and ops earnings are a "means to an end"; and the capital components are the "end results".

(Many businesses only comprehend operating earnings or 2. above.)


For years, the Trender® Platform has effectively provided businesses with their company’s full financial profile in everyday language via the 5 Elements® of Financial Fundamentals.

For many businesses - they don’t have a shortage of data - they have a shortage of insights that are derived from having succinct and understandable financial fundamentals.

The Trenders fill this financial-insights void.

It may seem counterintuitive, but brevity can expand financial & business knowledge.

Generating succinct financial fundamentals for businesses provides them with something important that they do not have.


Reach out for an introductory call or Zoom to discuss how this can help the leaders of your business or your clients’ businesses.


Edward B. Patton

5701 Broadway, Suite 102

San Antonio, Texas 78209

Phone (210) 822-9977

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